The cryptocurrency market’s volatility does not seem to be subsiding, with liquidity sweeps completed and the 8-10 January period remaining a prime candidate for ETF approval discussions with the SEC. Meanwhile, Goldman Sachs’ plans have been leaked, revealing the investment bank’s intentions to play a significant role in the upcoming spot Bitcoin ETFs.
Founded in 1869, Goldman Sachs is one of the world’s largest investment banks, now positioning itself to claim a share of the spot Bitcoin ETF market, following in the footsteps of JP Morgan and Jane Street who have recently become Authorized Participants (APs) in ETF agreements.
Sources familiar with the matter suggest that Goldman Sachs is preparing to play a pivotal role in the launch of spot Bitcoin ETFs in the US, alongside giants like BlackRock and Grayscale. Grayscale has previously challenged the SEC in court, effectively cutting off the commission’s rejections of ETFs based on price volatility concerns.
The industry now anticipates that the SEC will soon fully capitulate to the crypto market, with approval for the ETF expected before the week’s end. Anonymous sources claim that Goldman Sachs will become an AP, a crucial role in the trillion-dollar ETF market that involves the creation and redemption of ETF shares.
Each spot Bitcoin ETF is expected to have 5-10 APs, with the biggest names in the field already being discussed. With BlackRock, the world’s largest asset manager, entering the Bitcoin business, it would be unlikely for other giants to remain on the sidelines.
Goldman Sachs is reportedly in talks for partnerships in this domain. Grayscale is the largest investment firm in crypto, managing a $26 billion GBTC, while BlackRock is a traditional investment titan with over $10 trillion in client assets. The upcoming days may reveal more details and additional financial firms joining as APs, potentially boosting positive momentum in Bitcoin and altcoins.